Florida Ltd

Florida Ltd.'s accounts payable balance at December 31, 2020, was $300,000 before any necessary year-end adjustments relating to the following:
1) Goods were in transit from a vendor to Florida on December 31, 2020. The invoice price was $20,000, and the goods were shipped FOB shipping point on December 29, 2020. The goods were received on January 4, 2021.
2) Goods shipped to Florida, FOB shipping point on December 20, 2020, from a vendor were lost in transit. The invoice price was $12,500. On January 5, 2021, Florida filed a $12,500 claim against the common carrier.
At December 31, 2020, what amount should Florida report as total accounts payable?

A) $300,000
B) $312,500
C) $320,000
D) $332,500

Correct Answer:

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